Allocating capital is genuinely socially valuable, but it is unclear whether profiting from short-run price fluctuations contributes to getting the long-run prices right; if you can make millions from a few hours of mispricing that doesn't materially affect the long-run allocation of capital, that activity's social value is questionable.

causalpending

Speaker

Daron Acemoglu

Evidence Quote

whether when you are making money on short-term price fluctuations that whether that actually is essential for getting the long-run prices

Source

Daron Acemoglu on Inequality and the Financial Crisis 02/21/2011EconTalk
Created: 6/16/2026, 2:36:28 PM

My Notes

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